Hotel Shuttle Consolidation at SFO

1. Hotel Shuttle Consolidation at SFO Alice Sgourakis Ground Transportation Manager, SFO AGTA Conference April 20, 2007

2. SFO-Area Hotels • Most hotels within 5 miles of Airport terminals have courtesy shuttle links • The 51 hotels served have a combined 10,000 rooms; the median-size hotel has 169 rooms • Since hotel consolidation took hold, some smaller hotels have courtesy shuttle service for the first time • The hotels are located in small San Mateo County cities, under separate jurisdiction from the Airport • The San Mateo County Convention and Visitors Bureau occasionally serves as a cooperative liaison

3. 1990s Congestion • 33 hotels provided their own shuttle service to their own hotel only, while adjacent hotels under the same ownership ran 2 shuttle services serving 2 hotels each • Severe curbside congestion often led vehicles to park two deep and be hemmed in • The typical courtesy shuttle was a cramped minibus or van • Vehicles sometimes broke down on the roadside • Hotels often diverted bell staff from other duties to drive shuttles

4. 1990s Pollutant Emissions • Hotels operated diesel and gasoline vehicles • Visible exhaust trails reflected spotty maintenance • Passengers endured toxic odors • Drivers and curbside personnel suffered health impacts • Fuel residue marked loading areas • Airport ground vehicles affected regional air emissions

5. SFO Clean Vehicle Policy • Implemented in 2000 • 100% of vehicles in applicable fleets to be clean-powered by 2012 • Trip fee differentials and other economic incentives encourage compliance • Airport applies for and manages grant funding • Over 500 grant-funded vehicles to date, 98% privately-owned

6. SFO’s Hotel Clean Vehicle Policy • Effective July 1, 2000, a dual tier trip fee structure was established for hotel courtesy shuttles • The existing rate became the base rate in the two-tier structure • The new tier was set at triple the base rate • Vehicle emissions and trip limits apply to the base rate

7. Vehicle Emissions Requirements • For a hotel operator to qualify for the base fee, all their newly-permitted shuttle vehicles must be dedicated Compressed Natural Gas (CNG) or equivalent emissions • Continued placement in the base fee tier requires retirement of pre-2000 diesel and gasoline vehicles by July 1, 2007 • A single non-compliant vehicle causes the operator to pay the high fee for all trips

8. Trip Limits • To be placed in the base fee tier, hotels in business as of April 1, 1999 had to reduce their average monthly trip total by one third (using April 1999-March 2000 as baseline) • Newer hotels have a ceiling of 2.25 trips per room per month, frequently lower than the adjusted ceiling for established hotels • Hotels with 67 to 133 rooms have a minimum allowance of 300 trips per month • Hotels with 66 or fewer rooms have a minimum allowance of 150 trips per month

9. 2007 Results • 44 out of 51 hotels are in consolidated groupings. Most trips service multiple hotels, avoiding significant loss of service at a given hotel. • There are only 15 full-time courtesy shuttle operators, down from 35 before consolidation: - 5 contractors, most active in other services such as parking shuttles and charter operations (68% of trips) - 3 hotels providing service for other hotels (20% of trips) - 7 hotels providing solo service (12% of trips) • Only one full-time operator (a solo hotel) pays the high fee. This operator’s trip total is below its limit, but the operator prefers to run gasoline-powered vans.

10. Consolidated Route Design • No Airport involvement • Two to 5 hotels are grouped in a single trip • Most contractors use multiple routes to service the 4 to 10 hotels each that they are responsible for • Lead hotel operators service between 2 and 4 nearby hotels each with a single route • During peak periods, vehicles normally return to the Airport every 30 minutes or less • During off-peak periods, some routes operate only on demand • During late evenings and overnight, some hotels operate solo service under a separate Airport permit to reduce contractor cost

11. Current Vehicle Fleet • About 50 vehicles in full time fleet • 38 minibuses and 12 vans • By July 1, 2007, all regularly-operated minibuses are expected to be CNG-powered, along with about 7 vans • The remaining gasoline-powered vans will be replaced with CNG when a new van product is available and grant-funded by Fall 2007, or will be operated by hotels paying the high fee • Effective July 1, 2007, there will be no diesels in the full time fleet

13. CNG Vehicle Refueling • Offering no subsidy or guarantees, SFO attracted two CNG fueling companies to lease property and build 2 large public access CNG stations, together worth $3M • The first station opened in 1999, the second in 2004 • The stations provide a combined 15 fast-fill hoses with fill pressures of 3,000 and 3,600 psi • Annual CNG demand is currently 1,150,000 equivalent gallons • Hotel shuttles account for 22% of demand • Other large demand categories are taxis (25%) and parking shuttles (24%)

16. CNG Emissions • Model Year 2007 CNG minibuses and vans have at least 75% less nitrous oxide (NOx) and hydrocarbon (HC) emissions than MY 2007 gasoline minibuses and vans. • Carbon dioxide (CO2) emissions are at least 25% less than gasoline vehicles. • Natural gas is lighter than air, and can’t contaminate land or water. • CNG refueling nozzles are double-sealed. There is virtually no vapor leakage in the refueling process.

17. Current CNG Vehicle Market • Ford Motor Co., traditional supplier of most CNG minibuses and vans, exited the market after Model Year 2004 • BAF Technologies started converting E450 Ford minibuses to CNG in MY 2005 • BAF’s converted E350 van is available in MY 2007 • Converted GM products may soon be available through BAF or others • The converted product is more expensive than the former Ford OEM product

18. CNG Incentives and Grants • A full Federal tax credit of up to $20,000 per vehicle is available for CNG minibuses • Some air quality districts, such as the Bay Area District and the CA South Coast District, offer grants of $4,000 (for CNG vans) up to $20,000 (for CNG minibuses), in addition to the Federal tax credit • The Bay Area’s minibus grants require 1:1 diesel vehicle scrappage • CNG refueling station operators offer fuel price discounts for high volume use • The non-discounted price of CNG averages 20% to 35% less than gasoline or diesel

19. An Assessment of SFO’s Hotel Vehicle Initiative • 16% increase in hotel rooms served by courtesy shuttle service since 1999-2000, mostly due to the opening of new hotels • 27% reduction in courtesy shuttle trips • 37% reduction in trips per room served • No significant reduction in service to and from most individual hotels • Adequate Airport curb space

20. An Assessment of SFO’s Hotel Vehicle Initiative (cont.) • No staff scheduling and vehicle maintenance headaches for hotels contracting for service • A few hotels gain income from transporting customers of nearby hotels • Over 80% reduction in nitrous oxide and hydrocarbon emissions, and more than 30% reduction in carbon dioxide emissions over the “do-nothing” alternative, holding vehicle model year constant

21. For More Information Roger Hooson, Senior Planner, SFO (650) 821-6511 roger.hooson@flysfo.com